The German federal government has approved a ten-point plan at a cabinet meeting to combat abuse of social benefits and exploitation, particularly in connection with freedom of movement within the EU. The document was prepared by Labor and Social Affairs Minister Bärbel Bas (SPD) and Interior Minister Alexander Dobrindt (CSU).
According to the Federal Ministry of the Interior, the plan aims to close loopholes in the social system, improve data exchange between government agencies, and make it harder for criminal groups to profit from benefits. The measures are due to take effect by the end of the year.
“We are closing loopholes in the welfare state and taking a firm stance against benefits fraudsters: anyone wanted on an arrest warrant must not receive social benefits,” Dobrindt said. The state, he added, must act consistently when the social system is exploited for criminal purposes.
Bas stressed that Germany needs foreign skilled workers and that millions of employees from other EU countries contribute to the economy. However, freedom of movement must not be used to exploit people and carry out organized fraud. “We do not tolerate exploitation and benefits abuse,” the minister said.
Key measures include expanded data sharing among social, immigration, tax, police and other authorities, including through push notifications and AI-based analysis. The Federal Employment Agency will receive a central competence center against benefits abuse and five regional offices. Employers will be liable for overpaid benefits in cases of sham employment. Municipalities will gain more tools against so-called slum properties (Schrottimmobilien), including simplified repair orders, a right of first refusal and, in extreme cases, the possibility of expropriation. People wanted on an arrest warrant — including convicted offenders who evade serving their sentences — are to be denied basic income support and social assistance. Stricter rules for EU citizens with only minimal employment and information campaigns in countries of origin are also planned.
The plan is aimed primarily at schemes in which organized groups bring citizens from southeastern European countries, house them in dilapidated buildings, arrange fictitious jobs and claim top-up benefits. Authorities emphasize that the measures are not directed against legal labor migration within the EU.
